overview of ecg capabilities
TRANSCRIPT
Overview of ECG Capabilities
Latham, NY
January 2021
The information contained in this report is privileged and confidential and intended only for the use of the recipient
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For more than 40 years, ECG has helped clients accelerate growth, improve business profitability and enhance their competitive position…
▪ “Boutique” management consulting firm founded in 1978
▪ Clients are Fortune 100 companies, utilities, emerging technology firms, new ventures, R&D organizations, private equity firms, industry trade associations and government agencies
▪ Expertise in technology-driven industries
o Aerospace & Defense and Transportationo Automation & Controls, Electronics and Communicationso Chemicals and Specialty Materialso Energy and Environmentalo Healthcareo Industrial Manufacturingo Information Systems and Business Serviceso Supply Chain, Logistics and Material Handling
▪ Global experience at all stages of the value chain and all stages of the product life cycle
▪ Leverages industry and functional best practices throughout all client engagements
ECG Capabilities
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ECG team has significant C-level, strategy, sales & marketing, finance and operations experience with global market leaders…
▪ Michael Orloff, Senior Associate▪ GE, Kennametal, Alcoa▪ MBA, RPI; BS, Clarkson
▪ William Goodman, Senior Associate▪ General Electric, United Technologies▪ GE, Financial Management Program▪ MIT Executive Education; BA, Trinity
▪ Paul Friesen, Principal▪ General Electric Executive▪ GE Executive Program▪ BS, University of Houston
▪ Mark Mead, Engagement Mgr.▪ United Technologies, Chubb▪ MBA, RPI; BS, Clarkson
▪ Gordon Olson, Principal▪ Lockheed-Martin, Knolls Atomic
Power, General Electric, Boeing▪ MBA, Harvard; BS, MIT
▪ Allen S. Goodman, President▪ Booz Allen & Hamilton, Simon &
Schuster▪ MBA, Wharton: AB, Harvard
▪ A. Richard Goodman, Chairman & Founder
▪ Entrepreneur▪ MBA, Harvard; BA, Williams
▪ Eleanor Goodman, Engagement Mgr.▪ St. Peter’s Health Partners,
Northeast Health, Lean Trainer▪ BS, Sage Colleges
ECG Capabilities
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We leverage best practices to provide our clients with actionable recommendations that have a significant impact on their businesses…
ECG Capabilities
Types of ECG Engagements
▪ Corporate & Business Unit Strategy, New Business Models▪ Market, Customer, Product & Competitive Assessments▪ Business Disruptors & Growth Opportunities
▪ Market Segmentation, Size, Growth & Profitability▪ Voice of Customer (VOC), Voice of Competitor▪ Product Strategy, Roadmaps, Competitor Analysis & Strategies
▪ Organizational Design & Structure▪ Business Process Improvement & Restructuring▪ Sales Force Effectiveness & Management
▪ New Technology Evaluation & Screening▪ Customer & Competitor Value Proposition▪ Evaluation of Strategic Options & Partners
▪ Acquisition Target Identification, Evaluation & Screening▪ M&A and Joint Venture Due Diligence▪ Strategic Assessment, Market Valuation & Business Plan
Development
Mergers & Acquisitions, Divestitures and Joint Ventures
Market, Customer and Competitive Intelligence
Business Strategy and Growth
Marketing, Sales and Operations Excellence
Technology Commercialization
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ECG Capabilities
ECG has expertise in a variety of technology-driven industries that are undergoing disruption, impacted by new business models and under profitability pressure…
Chemicals and Specialty Materials
Aerospace & Defense and Transportation
Information Systems and Business Services
Automation & Controls, Electronics and Communications
Energy and Environmental
Supply Chain, Logisticsand Material Handling
Industrial Manufacturing
Healthcare
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▪ Aerospace & Defense and Transportation… aerospace engineering, alternative fuels, commercial aviation, electric vehicles, flight systems, manned space vehicles, missile defense, naval fleet support systems, personal mobility vehicles, trucking
▪ Automation & Controls, Electronics and Communications… automation software, building control systems, communication products, computer hardware, data acquisition, digitization, expert systems, imaging and mapping, IoT, mobile phones, monitoring & diagnostics, office products, power electronics & supplies, robotics, sensors, telecom & network equipment, testing, uninterruptible power supplies (UPS), TVs, VOIP, artificial intelligence (AI) applications
▪ Chemicals and Specialty Materials… adhesives, ceramics, coatings, composites, concrete, engineered plastics, glass, lead, nanomaterials, paper, sealants, superconductivity
▪ Energy and Environmental… cable & wire, carbon capture, DG, energy storage, EPC, fuels, gas & steam turbines, aeroderivative turbines, generators, oil & gas transmission and E&P equipment, particulate measurement, reciprocating engines, renewables, smart grids, microgrids, meters, interconnection, substation automation, T&D equipment, water & air filtration
ECG Capabilities
Our experience spans a wide range of market segments, products and services…
▪ Healthcare… medical imaging & diagnostic equipment, clinical and non-clinical supply chain, medical administration, RFP process, outsourced vendor management, food & nutrition services, environmental services, patient transport services, clinical and non-clinical records management & storage, laundry & linen services, in-house linen distribution services, in-house print services, energy management, AI applications
▪ Industrial Manufacturing… boilers, compressors, heat exchangers, instrumentation, inverters, monitoring & diagnostics, motors & drives, process equipment, process optimization, pumps and valves, robotics, turbines, vibration monitoring, AI applications
▪ Information Systems and Business Services… aftermarket, big data & analytics, operating systems, contract manufacturing, consulting, economic development, engineering, equipment rentals, field repair & maintenance, inspection, finance, fuel delivery, IT, installation, M&A, parts, power quality, predictive maintenance, R&D, O&M, upgrades, AI applications
▪ Supply Chain, Logistics and Material Handling… AGVs, automation systems, conveyor handling systems, fleet management, forklifts trucks, global sourcing, material handling systems, power solutions, supply chain management, telematics, distribution and warehouse management systems
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Types of Projects
Market & customer intelligence & assessment… market drivers & disruptors, segmentation, size & growth, forecasting, VOC
Product & technology assessment… product development roadmaps, competition, costing, positioning, features & functionality
Competitor intelligence & assessment… strategies, positioning, pricing, performance, voice of competitor, threats & opportunities
Business & market strategy… vision, goals & objectives, target markets & customers, offerings, channels, pricing, performance
Business development & growth… opportunities in core & adjacent markets, M&A, strategic alliances, joint ventures
Sales… customer value proposition, sales effectiveness, account management, dealers, incentives, performance, benchmarking
Supply channels… mix, economics, dynamics, channel management
Pricing… pricing structure, elasticity of demand, forward pricing, licensing, strategy & tactics
Operations strategy… 360 assessments, organizational design, sales & marketing, supply chain, engineering, manufacturing, IT
Cost reduction… Business, process restructuring & redesign, work activity analysis, economies of scale
We leverage best practices and apply rigorous analytics to develop insightful and practical findings, conclusions and recommendations…
ECG Capabilities
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We assess and plan for new disruptive new technologies which are driving new business models and enabling new ways to capture operating efficiencies…
Automation & Manufacturing Energy Supply Chain
Computer & Communications Healthcare Retailing
Direct labor (OEMs)
Robotics(Fanuc, ABB,
Yaskawa)
AGVs & new form factors
(Dematic, JBT, Jungheinrich)
Distributionoperator-driven
(Raymond, Crown, Hyster-Yale)
Gas turbines(GE, Mitsubishi,
Siemens)
Renewables(First Solar, Vestas)
Hydrogen (Nel Hydrogen)
LAB energy storage
(Exide, Enersys, East Penn)
LIB energy storage
(LG, Panasonic, Integrators)
Independent delivery
(Amazon, Uber)
Integrated delivery
(FedEx,UPS)
Fixed & wired phones
(AT&T, Nortel)
Smartphones
(Apple, Samsung)
Centralized mainframe,
minicomputers(IBM, DEC)
Tablets/laptops(Apple, Dell Samsung)
Generalized physician care
Customized care thru AI,
ML & analytics
Department stores(Sears, JC Penny)
E-Commerce(Amazon, eBay)
Centralized manufacturing
(OEMs)
3D-printing(HP, 3D
Systems)
Source: ECG Analysis
Disruptor
Physical stores(Blockbuster)
E-Services(Netflix, Hulu)
DisruptorDisruptor
Disruptor Disruptor Disruptor
Centralized service delivery
(Hospital)
Hybrid service delivery(Urgent Care)
ECG Overview
Operating cost structure
M&A and new technologies
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Integrated Utility, 29%
IPP, 26%
Utility Holding Company, 24%
Power OEM, 12%
Regulator, 9%
Interviewees by Type of Company
United States, 71%
Canada, 29%
Interviewees by Country
Board, Chairman, President & CEO, 35%
BD, 15%Generation,
13%
Regulatory, 10%
E & C, 9%
Strategy, M&A, 7%
GM, 4%
Bus & Admin, 3% Commercial Analytics, 1%
Interviewees by Function
Board, Chairman, President & CEO, 38%
EVP, SVP & Managing Director, 25%
VP & GM , 21%
Commissioner, 9%
CCO, Chief Engineer, 7%
Interviewees by Title
ECG Capabilities
Our VOC work helps leaders manage change… For a global energy market leader, we interviewed C-level executives to assess key disruptors impacting the industry…
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Low Medium High
High
Medium
Low
Potential Competitive Advantage*
Market Growth Potential
Market Size
& Annual
Growth
($ millions)
ECG Capabilities
We provide in-depth customer, market and competitive intelligence to identify, screen and prioritize market, product and service business growth opportunities…
Commercial & IndustrialInstrumentation & Control Market Growth Opportunities
Note: *Potential ability of any competitor to build competitive advantage through a differentiated product offering
Segment J
Segment E
Segment F
Segment GSegment H
Segment I
SegmentC
Segment D
SegmentB
SegmentA
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Situational Analysis
Market Assessment
Customer Assessment
Competitive Analysis
Market Demand & Share Forecast
CVP & Business Model
Business Plan & Pro Forma
Implementation Plan
ECG Capabilities
We develop business and technology commercialization strategies that involve a disciplined market and customer-based approach…
Implementation PlanSet timing, allocate investment
resources, organize resources, initiate strategic alliances, JVs & acquisitions
Business Plan & Pro FormaDevelop business/TC plan, build financial pro formas and identify
strategic alliances, JVs, acquisitions
CVP & Business ModelFormulate competitive customer value proposition and determine
business model approach Market Demand & Share ForecastForecast potential available market demand and
determine market share penetration of new technology
Situational AnalysisAssess current business plan, status and internal skills & capabilities to determine “gaps”
Market AssessmentSegment market & determine market
size, growth, trends and regulatory environment impacting new technology
Customer AssessmentDetermine customer needs, decision-making process and buying behavior by segment
Competitive AnalysisEvaluate competing technologies, products and service offerings by segment, conduct
competitive analysis, identify sources of competitive advantage
Business Strategy & Technology
Commercialization Planning Process
Competitive/CVP “Go/No Go” Decision
Market “Go/No Go” Decision
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ECG Capabilities
Our product strategy and roadmap work ensures that product and service offerings are tightly aligned with customer needs…
Factors Driving Willingness to ConsiderNew Energy Infrastructure Technology
Price Demand CurveNew Energy Infrastructure Technology
Source: ECG interviews
0% 10% 20% 30% 40% 50% 60% 70% 80%
Smaller Footprint
Lower Capital Cost
Improved Reliability
Extended Run Time
Lower Maintenance
Extended Lifetime
Lower Operating Cost
Lower Life Cycle Cost
Environment
Higher Power Density
% Respondents
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
0% 20% 40% 60% 80%
Pri
ce [
$]
Market Share
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Core Markets
New Regions
New Value Chain
New Business Models
New Products &
Services
New Customers
New Channels
ECG Capabilities
Our strategy work helps our clients identify the most attractive business growth and M&A opportunities… both regionally and globally…
▪ Materials▪ Systems & Components▪ Solutions▪ Services
▪ Western & Central Europe▪ Middle East▪ Asia
▪ Direct sales▪ Distributed networks▪ Dealers
▪ NextGen product development▪ Adjacent technologies & services▪ Finance or service extensions
▪ Adjacent markets▪ Adjacent channels▪ New type & size profile
▪ M&A: Acquisitions, JVs▪ Sales: Direct and Indirect▪ Pricing: Lifecycle, Subscription
New Growth Opportunities
▪ U.S. & Canada▪ Central America▪ South America
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Management
Procurement
Logisitics, Expediting & BoM
Other Stakeholders
Quality Control
Estimating
Project Management
Engineering
ECG Capabilities
We perform best practices and operations restructuring engagements to drive performance and operating efficiency improvements… We assessed/restructured a $2.5 billion supply chain… Client realized major cost savings…
Location #1 Location #2
Location #3 Location #4
360 Supply Chain AssessmentPO Value By Location
($MM)
360 Supply Chain AssessmentInternal Stakeholder Interviewees
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ECG Capabilities
ECG’s value proposition is compelling…
▪ Senior level project teams… Fortune 100 management consulting, C-level operating experience
▪ Industry experience/expertise… Expertise in technology-driven industries, e.g. energy & environmental, aerospace, automation & controls, electronics, specialty materials,, healthcare, IT, supply chain and services
▪ Deep functional core competencies… strategy, marketing & sales, engineering, operations, supply chain, M&A
▪ Rigorous data gathering & analytics… generates insightful findings, conclusions & recommendations
▪ Global contact network… enhances client business development and improves quality & speed of work
▪ Leverages industry best practices, new ideas and fresh perspectives… enhances quality of project work
▪ World-class, quality-oriented culture… emphasizes insightful, practical and actionable results
▪ Strict confidentiality… maintained throughout all of our work
▪ Strong ECG/client team working relationships… foundation of great project work
▪ Return on Investment… clients typically realize benefits of 20-50x ECG’s professional fees… ECG billing rates are 40-50% lower than competitive, high caliber consulting firms